Exit readiness starts long before the exit

Founders often start thinking about exit when an offer arrives. By then, the most valuable work is hard to do. Buyers and their advisers will look at the business in detail, and every gap they find becomes a reason to lower the price, add conditions or walk away.

Having funded, built, managed and exited companies ourselves, we've seen what separates a smooth process from a painful one. It nearly always comes down to preparation.

What buyers look for

• Revenue that is recurring, diversified and well documented
• A leadership team that can run the business without the founder
• Clean financials, contracts and intellectual property ownership
• Systems and data that will survive integration
• A clear story about where growth comes from next

Reduce key-person risk

If the business depends on one or two people, a buyer is buying a risk. Building a leadership team, documenting how the business runs and planning succession all make the company more valuable, and make life easier long before any sale.

Get the house in order

Customer contracts with change-of-control clauses, unclear IP ownership, informal agreements with key staff: these are the issues that surface in due diligence. Finding and fixing them early costs far less than discovering them under deadline pressure.

Build the data room before you need it

A well-organised data room shows a buyer that the business is well run. Preparing one early also reveals gaps while there is still time to close them.

Know the story

Buyers pay for the future. The strongest equity stories connect past performance to a credible growth plan, backed by evidence: a pipeline, new markets, partnerships and the team to deliver them.

Start now

Whether the goal is a trade sale, a secondary investment or an IPO, the work is much the same, and it takes time. The best moment to start is while you are still growing, not once you have decided to sell.